Banks are planning to sell as much as about $21 billion of high-grade bonds as soon as early next year as part of a $63 billion funding package that Broadcom Inc. has pulled together to help finance chips for AI developer Anthropic PBC.
Bank of America Corp., Citigroup Inc., and Morgan Stanley helped to arrange the $63 billion deal and other banks are expected to submit commitments to join the group in the coming days, according to people with knowledge of the matter. The banks are lending about $42 billion of the amount, as much as half of which is expected to be refinanced in the US high-grade corporate bond market in the first quarter of 2027.
The financing is being closely watched across Wall Street and Silicon Valley as bankers and tech executives look for assurance that investors are still eager to lend to artificial intelligence projects. While companies have managed to borrow more than $455 billion across markets globally to fund AI-related spending this year, there are signs that money managers are growing warier of investing in the debt.
Blackstone Inc. is anchoring the rest of the financing, committing $9 billion. Representatives for Broadcom, Blackstone, Bank of America, Citi, and Morgan Stanley all declined to comment. The deal is Broadcom's second large chip financing package this year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing